Bitcoin is something most, if not all, people have heard about, as it’s the number one traded cryptocurrency. Second in line is Ether, which is built on top of the open-source Ethererum blockchain.
But how much do you know about Litecoin?
Litecoin is the third most traded cryptocurrency out there. If you are only purely interested in the numbers and trends, here you’ll find Litecoin price predictions 2025. However, if you are curious about how Litecoin got started and how it built up its reputation, keep reading.
What is Litecoin?
Litecoin was first introduced to the world all the way back in 2011 by a gentleman called Charlie Lee. It was created to act as an alternative to Bitcoin as it offered some differences to the more well-known cryptocurrency. Essentially it was designed function similarly to Bitcoin, but much faster and lighter.
Litecoin is a person-to-person internet currency that works all over the world. It can be used to pay for things online in a similar way to an online bank transfer or PayPal, but the trade is made via units of Litecoin rather than physical currency like dollars, euros, or rupees. This is pretty much the only thing that makes it similar to a regular monetary payment.
How is it different from legal tender?
First things first, the fact that is isn’t “legal tender” shouldn’t scare you away from working with Litecoin or any other internet-based currency. There are some benefits to using cryptocurrencies and some risks. Overall it is up to you and the other party as to what works best for you.
Unlike physical money and much like other cryptocurrencies, Litecoin is not issued by a central authority such as the government. The rules on how online currencies are regulated and viewed vary from state to state in the US. There are some risks that come with using things like Litecoin, and it is yours and the other parties’ responsibility to keep track of your own transactions. There is a Blockchain in place, which is where the information of each transaction is stored, and the benefit of Litecoin and its Blockchain is that it can handle a high volume of transactions much quicker than traditional cash payments.
The biggest difference between a traditional paper or bank transfer is that to generate Litecoin, you have to mine it.
Mining Litecoin
What is mining,you may ask? To put it very simply — as the process is quite complicated — new Litecoins are created regularly via a process called mining, which is a record-keeping service.
Here is a short and sweet explanation of that process:
- Litecoin ensures there is only one blockchain. It does this by creating blocks that are difficult to make.
- Miners have to create a “Cryptographic hash” of the block that meets the criteria. This can take a very long time as the only way to find one is to make many and hope that one of them works.
- If the miner is successful, they are rewarded with 25 Litecoins.
The full, technical process of mining is long and complex. On top of this, the criteria and difficulty of the hash adjust based on how often blocks appear. More competitors mining means the criteria is harder.
Conclusion
Hopefully, this condensed exploration of Litecoin has piqued your interest, and perhaps you will look into this alternative and faster version of Bitcoin. As with anything financial, ensure that you do your research properly and keep your cards close to your chest. In the unregulated world of cryptocurrency, it is vital to be careful when financial risk-taking and to keep good records. But, if you think you are ready to invest, Litecoin is an up-and-coming crypto that you don’t want to miss.
